MONEY

[rith]

It is August. In a small town on the South Coast of France, holiday

season is in full swing, but it is raining so there is not too much

business happening. Everyone is heavily in debt. Luckily, a rich

Russian tourist arrives in the foyer of the small local hotel. He asks

for a room and puts a Euro100 note on the reception counter, takes a

key and goes to inspect the room located up the stairs on the third

floor.


The hotel owner takes the banknote in hurry and rushes to his meat

supplier to whom he owes E100.


The butcher takes the money and races to his wholesale supplier to pay his debt.


The wholesaler rushes to the farmer to pay E100 for pigs he purchased

some time ago.


The farmer triumphantly gives the E100 note to a local prostitute who

gave him her services on credit.


The prostitute goes quickly to the hotel, as she owed the hotel for

her hourly room use to entertain clients.


At that moment, the rich Russian is coming down to reception and

informs the hotel owner that the proposed room is unsatisfactory and

takes his E100 back and departs.


There was no profit or income. But everyone no longer has any debt and

the small town people look optimistically towards their future.


COULD THIS BE THE SOLUTION TO THE Global Financial Crisis?

Or, is there a catch here?

 

[nadman]

Heh he! maru kathawa.
I guess the moral is that mony is just paper and coins and that it is us as a society who attaches a value to it.

 

[Mal Aiyya]

Do you know Economics?

I can explain this easily if you know a little about Econ

 

[ni_shi2005]

adoo pissu hedanavane banz!!! kohada eka wenne?

bara game ekak ban!! meka poddak research karala try karala balanda one

 

[ni_shi2005]

Do you know Economics?

I can explain this easily if you know a little about Econ

yeah podak kiyanko meka loss tiyanavda kiyala

 

[Mal Aiyya]

yeah podak kiyanko meka loss tiyanavda kiyala

Ok...... to start with, there is a concept called the Two-sector model in the economy, which is a closed one. It consists of only Households and Firms

In economics, the term circular flow of income or circular flow refers to a simple economic model which describes the reciprocal circulation of income between producers and consumers. In the circular flow model, the inter-dependent entities of producer and consumer are referred to as "firms" and "households" respectively and provide each other with factors in order to facilitate the flow of income. Firms provide consumers with goods and services in exchange for consumer expenditure and "factors of production" from households.

 

[Mal Aiyya]

The circle of money flowing through the economy is as follows: total income is spent (with the exception of "leakages" such as consumer saving), while that expenditure allows the sale of goods and services, which in turn allows the payment of income (such as wages and salaries). Expenditure based on borrowings and existing wealth – i.e., "injections" such as fixed investment – can add to total spending.

 

[Mal Aiyya]

Here is a pic that I found...

 

[ni_shi2005]

Ok...... to start with, there is a concept called the Two-sector model in the economy, which is a closed one. It consists of only Households and Firms

In economics, the term circular flow of income or circular flow refers to a simple economic model which describes the reciprocal circulation of income between producers and consumers. In the circular flow model, the inter-dependent entities of producer and consumer are referred to as "firms" and "households" respectively and provide each other with factors in order to facilitate the flow of income. Firms provide consumers with goods and services in exchange for consumer expenditure and "factors of production" from households.

ohh ya ya!! in ECON sylbs part 2's beginin stuffs na
oh ya bt simply can do loadz of things with diz u knw!! gonna try somthin

 

[ni_shi2005]

ya ya i got it!!